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  Milwaukee Archdiocese's Appeal of Insurance Decision on Hold

By Annysa Johnson
Milwaukee Journal Sentinel
January 12, 2011

http://www.jsonline.com/features/religion/113371684.html

The Archdiocese of Milwaukee has appealed to the Wisconsin Supreme Court a decision absolving its insurers of liability in pending clergy sex abuse cases. But the appeal was put on hold this week because of its Chapter 11 bankruptcy proceedings.

The bankruptcy, filed last week, essentially stays all related civil actions, including the fraud cases now pending in Milwaukee County Circuit Court and the Dec. 23 appeal by the archdiocese on the insurance issue.

In that filing, the church asked the high court to review a November Court of Appeals decision, which absolved its insurers of liability because the acts alleged in the fraud lawsuits were intentional rather than accidental.

But attorneys for the insurers wrote a letter to the Supreme Court this week, saying it would not file its response without approval of the bankruptcy judge, out of concern that it may violate the stay order.

David Muth, one of the archdiocese's attorneys, declined to say whether they would ask the bankruptcy court to lift the stay so the Supreme Court could respond to the appeal. The attorney for the insurers did not immediately return a telephone call seeking comment.

 
 

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